I took a look at a relative’s cable bill last year. He lives in a town with three competing cable/ISP services. Here is how the monthly costs broke down:
Expanded basic service: $60
High definition converter box: $10
Digital converter rental: $3
HBO Cinemax package: $18
Premiere Total Pack: $16
Showtime/TMC: $5
Starz: $5
Franchise fee: $7
Broadcast TV surcharge: $4
Sports programming surcharge: $2
Total monthly cost: $130
Annual cost: $130 × 12 months = $1,560
That doesn’t include Internet access, which adds another $60 or $70 per month, plus the land line. So they’re paying close to $250/month. Sadly, that’s typical for a lot of people around here, who often get suckered in by $99 “triple play” deals and don’t read the fine print about extra fees, premium packages, or escalating rates after years 1 and 2.
It’s a total racket.
One thing to add about TFA: DTV reception even over a good antenna within 10 miles of the broadcast towers can be spotty. We live near Boston, and every time a car drives by our house the image freezes even for the big VHF channels.